Freeing Residential Affordable Markets from Excess Regulation Act

“(n) Energy Codes in Opportunity Zones

“(1) In general—To be eligible to receive amounts under this title on or after the date that is 90 days after the date of the enactment of this subsection, a State shall provide to each person who built a covered dwelling unit in an opportunity zone that is located in the jurisdiction of such entity, not later than 30 days after such dwelling unit has been inspected and certified for occupancy, a payment in the amount equal to the difference, determined by the Secretary of Housing and Urban Development, between—

“(A) the cost of implementing the energy housing code of the State with respect to such covered dwelling unit, including costs associated with labor, supplies, wages of employees, inspection costs, or any other cost realized by the person who built a covered dwelling unit; and

“(B) the cost of implementing the Department of Housing and Urban Development’s Minimum Energy Standard with respect to such covered dwelling unit, regardless of whether such covered dwelling is subject to such standard.

“(2) Exception—Paragraph (1) shall not apply if the energy housing code of the State has a lower cost than the Department of Housing and Urban Development’s Minimum Energy Standard.

“(3) Disclosure requirement—A person who built a covered dwelling unit in an opportunity zone and who has received or may in the future receive a reimbursement for building costs incurred shall provide to the person who first buys the covered dwelling unit, using a procedure and form established by the Secretary, a disclosure document that, based on information reasonably available at the time such disclosure is made,—

“(A) identifies the difference between the cost of implementing the energy housing code of the State with respect to such covered dwelling unit and the cost of implementing the Department of Housing and Urban Development’s Minimum Energy Standard with respect to such covered dwelling unit;

“(B) identifies any amount that such person who built a covered dwelling unit has received or expects to receive from the a State under this section and any portion of such amount that was used by such person to reduce the price of the covered dwelling unit.

“(4) Definitions—In this subsection:

“(A) Covered dwelling unit—The term “covered dwelling unit” means a “residential building” such as term is defined in section 6832 of title 42, Code of Federal Regulations.

“(B) Opportunity zone—The term “opportunity zone” has the meaning given the term in section 1400Z–2 of title 26, United States Code.”